The “Honey I shrunk the debt” Balance Transfer Campaign utilised an innovative offer and compelling creative to deliver a new benchmark in results for balance transfers – an ROI of $152 on $1.
The aim was to attract new credit card customers by offering a much lower interest rate for a fixed period. To take advantage of this, the customer must move their credit card balance to BNZ.
Prior to the 2010 campaign, BNZ had run a balance transfer campaign at the same time each year for four consecutive years. Working with its previous agency in 2009, the results had been good, delivering 120% of target. However the client was asking for a 10% uplift from those results – in the face of a competitive environment. The communications budget for 2010 was the same as for 2009.
The challenge for the bank’s new agency was to find a bold and different approach. The campaign’s two crucial points of difference were:
I. Compelling creative. This environment is largely price-driven – and bank rate ads are traditionally pretty dull. Most people gloss over them unless they are actively rate surfing. So the challenge was to create an offer that stood out from the clutter and was compelling enough to drive conversion. It also needed simplicity.
II. A big, bold, never-seen-before offer. One crucial strategic insight arose from research: many customers (64%) saw balance transfer as a ‘hassle’ because the traditional timeframe of 3-6 months was not long enough to pay off their balance. This barrier was removed in one fell swoop, offering a low rate of 4.99%...valid for the life of the debt.
The campaign exceed target by more than 400% - a whopping return on investment of $152 for every $1 spent.